S&P, Dow slide as Trump turns up tariff heat on Canada
Trump on Thursday announced a 35% tariff on Canadian imports, set to kick in next month, up from the 25% imposed in March, and warned that the levy could climb higher if Canada retaliates.
The president also floated the possibility of a sweeping 15% or 20% tariff on other countries, up from the current 10% baseline.
Caution also prevailed as the European Union braced for a possible formal letter from Trump, with details on fresh tariffs. At 11:47 a.m., the Dow Jones Industrial Average fell 0.68%, while the S&P 500 lost 0.27%.
Eight of 11 sectors on the S&P 500 traded in the red, led by the materials index that dropped 1.3%.
The S&P 500 and the tech-heavy Nasdaq were on course to close the week in the red, while the Dow looked set to end its three-week winning streak — the longest stretch since January — and braced for its steepest weekly drop in over a month.
Markets this week remained mostly subdued. The only upside was Nvidia shattering all records to become the first company to top a $4 trillion valuation.
Its shares hit a fresh record high on the day, helping the tech-heavy Nasdaq stay out of the red. The index held steady at 20,633.38 points.
This week, Trump expanded his tariff campaign, taking aim at a wider range of countries — including allies such as Japan and South Korea — and slapping a 50% tariff on copper.
Yet, the market response to this latest salvo was a far cry from the turmoil seen after April's 'Liberation Day' tariff announcements, which triggered the sharpest weekly losses for major indexes in nearly six years.
Analysts are noting a growing sense of resilience among investors, who seem to be getting used to Trump's tariff threats.
Investors are, however, on now guard for the upcoming earnings season, which they expect to provide fresh insight into how trade tensions are reverberating across corporate America.
'We believe expectations are a bit low for S&P 500 earnings. Much of the second quarter was marked with tariff and trade issues and that may have caused some dislocations in earnings,' said Michael Landsberg, chief investment officer, Landsberg Bennett Private Wealth Management.
Denim maker Levi Strauss & Co jumped 10.9% after the company raised its annual revenue and profit forecasts and beat quarterly estimates.
Meta Platforms fell 1.2%. A report said the company was unlikely to make more changes to its pay-or-consent model, potentially inviting fresh EU antitrust charges and hefty daily fines.
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